Companies based in the Northeast United States have traditionally purchased property terrorism insurance at a higher rate than companies based in other regions. Unsurprisingly, 80 percent of companies based in New York purchased terrorism insurance in 2018, tying it with Chicago for the lead among major U.S. cities that are perceived as higher-value targets for terrorist acts
New York-based companies also spent the most on terrorism insurance as a percentage of total premiums. Companies based in Los Angeles and Houston purchased terrorism insurance at the lowest rate within this group, but the price per million for terrorism insurance was highest for Houston-based companies — exceeding even New York-based companies — in part because of high overall property insurance premiums paid by energy companies, many of which are headquartered in Houston.
Guy Carpenter affiliate Marsh has released its new Terrorism Risk Insurance Report, which explores the state of terrorism and the terrorism insurance marketplace in key regions.